MEMORANDUM

DISCUSSION:

To lessen the burden on applicants and eligibility staff for verification of all medical expenses, a Medical Expense Standard is now available.  Effective October 1, 2011 a Food Stamp EU with an elderly or disabled member verifying medical expenses over $35 is entitled to the Medical Expense Standard of $200.  A Food Stamp EU with an elderly or disabled member verifying medical expenses in excess of $200 will receive the actual amount of medical expense as a deduction.

The following has not changed:

• The $35 excess medical deduction.
• Policy on what medical expenses qualify and how they are verified.
• Policy on who is eligible to receive a medical expense deduction.

When medical expenses are entered on the Medical Expense (FMXA) screen FAMIS will total verified medical expenses for all elderly and/or disabled Food Stamp EU members.  If the total is $35 or less, no medical expense deduction will apply.  If the total is greater than $35 and less than or equal to $200, the Medical Expense Standard minus the $35 excess medical deduction will apply.  If the total is greater than $200 the actual amount of medical expenses minus the $35 excess medical deduction will apply as the medical expense deduction.

UNDER $200 VERIFIED: Individual has SMI premium of $96.40, and declare additional $37.20 in medical expense.  Because the SMI is over $35.00 and is verified, the EU receives the Medical Expense Standard of $200 without further verification.

OVER $200 VERIFIED: Individual has SMI premium of $96.40, and also verifies additional $139.20 in medical expense.  The EU receives the actual verified medical expenses of $235.60.  The system deducts the $35.00 medical expense deduction from the $235.60 and allows $200.60.

The following table illustrates the amount of medical expense deduction a household will receive:

Total of all Eligible, Verified Medical Expenses	Calculation	Medical Expenses Deduction Amount
$20	$0 because less than $35	$0
$50	$200 (Medical Expense Standard) -$35	$165
$150	$200 (Medical Expense Standard) -$35	$165
$201	$201 - $35	$166
$235	$235 - $35	$200
$450	$450 - $35	$415

Update Process

The FAMIS system will be updated with the new Medical Expense Standard the weekend of September 10, 2011 along with the October Food Stamp mass adjustment.  For information regarding case actions and notices refer to IM-#51; 09/02/11 October Food Stamp Mass Adjustment memorandum.

The following chart and procedure guide are revised on the Intranet:

• Standards Chart History and
• Budgeting Medical Expenses.

NECESSARY ACTION:

• Review this memorandum with appropriate staff.

AC/cb